The sale is expected to enhance ADCB’s first half of the 2011 profitability upon completion of the transaction as well as release of the capital..
Upon completion of the transaction, ADCB’s Tier 1 ratio is likely to increases by approximately 2.04% from 12.39% to 14.43% and total capital adequacy ratio increases by approximately 4.08% from 17.03% to 21.11% .
ADCB CEO Ala’a Eraiqat said "Whilst the bank has benefited tremendously from the ownership of RHB, the management and board of ADCB are now clearly focused on executing its strategy of being a UAE centric bank, in line with the commitment to shareholders.
Aabar CEO Mohamed Badawy Al Husseiny said the purchase of this stake in RHB adds a core asset to Aabar’s financial services investments portfolio.
"We are impressed by the strong performance achieved by RHB and are excited by the opportunity to potentially participate in domestic consolidation and regional expansion," Al Husseiny said.
